Apple TV+ Is ‘No Substitute’ for Netflix, Analyst Says

Investor fears over Apple TV+ hurting
Netflix
are overblown, according to Bank of America Merrill Lynch.

The back story. On Tuesday,
Apple
(ticker: AAPL) announced new details on its forthcoming Apple TV+. The video service will debut on Nov. 1 in more than 100 countries for $4.99 a month. In addition, new iPhone, iPad, Apple TV, iPod Touch or Mac owners will get one year of Apple TV+ free.

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What’s new. Bank of America Merrill Lynch analyst Nat Schindler reiterated his Buy rating for Netflix stock on Tuesday, playing down the competitive threat from Apple.

“Until Apple’s content library gains scale to compare to Netflix or Amazon, it is likely as a nice-to-have for Apple device users/buyers and no substitute for Netflix’s large catalog of licensed content and originals,” he wrote.

The analyst said Apple TV+ will have about 9 titles at its debut versus the more than 400 original series available on Netflix, according to his estimate. He noted the company’s large lead over the forthcoming competition, citing Netflix’s subscriber base of more than 150 million.

“We don’t see Apple TV+ in its current form as likely to disrupt Netflix’s positioning as the subscription video-on-demand staple for consumers,” he wrote.

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